Western Balkans Democracy and Prosperity Act
The Western Balkans Democracy and Prosperity Act is a comprehensive U.S. policy package designed to deepen economic and democratic engagement with the Western Balkans (Albania, Bosnia and Herzegovina, Croatia, Kosovo, Montenegro, North Macedonia, and Serbia). It aims to boost trade and investment, promote regional integration, strengthen governance and anti-corruption efforts, and enhance cyber resilience and security across the region. The bill envisions a coordinated, multi-agency approach—including diplomacy, trade, development finance, cybersecurity, education, and cultural exchange—to accelerate European Union and NATO alignment, reduce dependence on Russian energy, and counter malign influence from adversaries. It also creates several new or expanded programs (e.g., anti-corruption initiatives, regional trade/development initiative, Peace Corps expansion, and the Young Balkan Leaders Initiative) and codifies existing sanctions authorities with an eight-year sunset. Key elements include a mandated 5-year regional strategy for economic development and democratic resilience; a regional trade and infrastructure initiative; enhanced support for civil society, independent media, and public diplomacy; and targeted efforts to counter disinformation and cyber threats. The bill also addresses Serbia-Kosovo normalization and suggests potential bilateral dialogues as progress occurs. Overall, the act seeks to promote inclusive growth, regional stability, and closer ties with U.S. partners while aligning with EU and NATO objectives.
Key Points
- 1Codified sanctions framework with a clear 8-year sunset. The bill preserves existing sanctions authorities (e.g., EO 13219/13304 and EO 14033), allows for limited waivers on national security grounds, and includes humanitarian and law-enforcement exemptions. This establishes a formal statutory basis for sanctions policy in the Western Balkans, subject to presidential waivers and rulemaking.
- 2Democratic and economic development initiatives. The act directs ongoing and new programs to fight corruption, strengthen judiciary and anti-corruption efforts, support independent media, and include Western Balkans in the European Democratic Resilience Initiative. It also prioritizes support for women- and youth-owned enterprises and civil society engagement.
- 35-year regional strategy for development and resilience. Within 180 days of enactment, the Secretary of State and USAID Administrator must work with other agencies to deliver a regional strategy that coordinates with EU/World Bank efforts, assesses economic opportunities and barriers for U.S. trade/investment, and outlines steps to improve governance, infrastructure, energy diversification, trade, and public diplomacy in the Western Balkans.
- 4Regional trade and development initiative. The Secretary of State and USAID (with other agencies) may run a regional program covering all Western Balkans countries and neighboring EU-bordering states. It aims to expand private-sector growth (especially SMEs, women- and youth-led businesses), increase intraregional and EU exports, promote startup ecosystems, engage diaspora communities, improve investment screening/regulation, streamline coordination across U.S. programs, and advance regional infrastructure—transport, ICT, energy, and procurement transparency.
- 5Cybersecurity, resilience, and information environment. The act emphasizes strengthening cyber defenses and ICT infrastructure, with a mandatory interagency report within a year detailing efforts, information sharing, and options to improve support (including potentially posting cyber professionals to U.S. posts in the region). It also seeks to counter disinformation and protect democratic processes in Western Balkans countries.
- 6Engagement in education, culture, and leadership. The bill expands cross-cultural and educational programs: university partnerships (including research on cyber resilience and disinformation), a Young Balkan Leaders Initiative (building leadership in business, cyber, civic life, and governance), fellowships for young leaders, and a public engagement center to counter disinformation and promote regional dialogue.
- 7Kosovo-Serbia normalization. The measure expresses support for the normalization path agreed in 2023 and encourages progress on the Implementation Annex, with the possibility of bilateral strategic dialogues and concrete initiatives once sufficient progress is made.
- 8Peace Corps expansion and public diplomacy. It calls for a Peace Corps assessment and potential expansion, and directs the creation of American Spaces centers to foster cross-cultural engagement, leadership development, and countering malign influence in the region.